Pour 1 inch of oil into a deep 6-inch-wide saucepan. Do not use a shallow pan or you run the risk of the oil boiling over. Preheat the oil to 345 degrees F.
In a small bowl, combine the sugar and cinnamon.
In another bowl, whisk the egg, buttermilk and vanilla together.
In a third bowl, whisk the flour, baking soda and salt together.
Pour the buttermilk mixture into the flour mixture and whisk until there are no lumps.
Pour the batter into a sealable sandwich bag and seal the bag.
When the oil reaches 345 degrees F, cut a corner off the bag to make a 1/4-inch hole, and drizzle half the batter into the oil, in a circular motion.
Fry the funnel cake until the edges turn golden brown and then flip the funnel cake over using tongs and fry the other side until it is evenly browned.
Transfer the funnel cake to a plate and immediately sprinkle with the cinnamon sugar coating both sides with an even layer of cinnamon sugar. If you run out of sugar, just pour the sugar in the bottom of the plate back into the bowl and reuse it.
Dust the funnel cake with powdered sugar and serve.
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